Management Accounting 09-03-2023

Bond, debentures and term loans fall under:

• Current assets

• Non-current assets

• Non-current liabilities

• Current liabilities

Operating costs include the cost of goods sold and _____.

• purchases

• sales

• gross profit

• other operating expenses

In the context of Funds Flow Analysis, the word “funds” is used to define

• Net Working capital

• Total current assets-Total current liabilities

• Both a and b

• None of the above

During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds.

• Net outflow of Rs 15,000

• Net inflow of Rs 15,000

• Neither inflow nor outflow

• None of the above

Which of the following are Non-current assets?

• Land, Building and Plant

• Leasehold property

• Computer software

• All of the above